9. South Bow Corporation (NYSE:SOBO)
Net Profit Margin: 21.32%
South Bow Corporation (NYSE:SOBO) ranks ninth among the most profitable energy stocks to buy now, with a net profit margin of 21.32%. The company operates 3,045 miles of crude oil pipeline infrastructure, connecting Alberta crude oil supplies to major U.S. refining markets in Illinois, Oklahoma, and the Gulf Coast. In simple terms, South Bow owns and operates energy infrastructure that helps move crude oil from where it is produced to where it is processed, consumed, and monetized.
That may not sound as exciting as oil exploration or LNG exports, but pipeline infrastructure is one of the most important parts of the energy market. Oil does not create value just by sitting underground. It has to move. It has to reach refineries. It has to be transported safely, consistently, and economically. That is why midstream and pipeline companies remain important for investors searching for energy infrastructure stocks, profitable pipeline stocks, oil transportation companies, and long-term energy cash flow plays.
On June 9, Raymond James initiated coverage of South Bow Corporation (NYSE) with an “Outperform” rating and a price target of C$60. That target implies upside potential of more than 19% from current levels. The analyst call gave the market a fresh reason to revisit the stock, especially at a time when crude oil logistics and North American pipeline capacity remain central to the energy investment story.
One of the biggest issues surrounding South Bow is the proposed partial revival of the Keystone XL oil pipeline. The company has deferred its decision to proceed with the project until mid-2027. Management has made it clear that it will only move forward if there is proof that a U.S. presidential permit is durable. That caution is understandable because the project was already cancelled once in 2021 after former President Joe Biden revoked its permit. For investors, this is not just a technical permitting issue. It is a reminder that energy infrastructure is often shaped as much by politics and regulation as by supply and demand.
Still, Raymond James sees the Keystone XL pipeline as an “irreplaceable long-duration asset” capable of supporting predictable cash flows for decades. That is a powerful statement because pipeline assets, once approved and operational, can become very difficult to replicate. They require land rights, permits, construction expertise, environmental approvals, commercial commitments, and political support. In the energy world, a major pipeline is not just an asset. It is a strategic corridor.
The analyst firm also expressed confidence that South Bow’s proposed 550,000-barrel-per-day Alberta-to-Wyoming pipeline, known as Prairie Connector, will eventually receive a positive final investment decision. Raymond James described the project as a potential “game changer,” and that phrase matters. A pipeline with that kind of capacity could meaningfully strengthen South Bow’s position in North American crude transportation, especially if demand for secure, long-term oil movement remains high.
The investment case for South Bow is not built on a flashy growth story. It is built on infrastructure, cash flow, and the strategic importance of moving Canadian crude into U.S. refining markets. With crude oil prices supported by geopolitical tensions and energy security once again dominating market discussions, companies that own critical pipeline systems are being viewed with fresh interest.
South Bow’s 21.32% net profit margin gives it a strong place on this list of high-margin energy stocks. Its future upside will likely depend on execution, regulatory clarity, and the market’s willingness to reward long-duration energy infrastructure. For investors searching for profitable energy stocks in 2026, SOBO offers a direct play on crude oil transportation and North American pipeline demand.
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